Author Question: If an American firm produces goods that are sold to a German household, then A) German GDP ... (Read 112 times)

JMatthes · **on:** Jun 29, 2018

If an American firm produces goods that are sold to a German household, then

A) German GDP increases but not U.S. GDP.
B) U.S. GDP increases.
C) the transaction is considered an export in the German GDP accounts.
D) net exports in the United States will not change because an export immediately generates an offsetting import.

Question 2

Suppose China Airlines wants to purchase a French Airbus. The price of the Airbus is 95 million Euro. If the exchange rate is 1 euro per 10 yuan, the price of this airplane to China Airlines is

A) 950 million yuan.
B) 10.52 million yuan.
C) 10 million yuan.
D) 9.5 million yuan.